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by ARLnow.com Sponsor December 12, 2017 at 11:45 am 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: Is it true that two-bedroom condos are a better investment than one-bedroom condos?

Answer: If you’re asking this question strictly as an investor, the answer is purely based on the numbers. If you’re buying for yourself, you’ll want to consider appreciation as well as what makes the most sense for your lifestyle. For example, do not spend an extra $150,000 because a two-bedroom will appreciate faster, if you’ll end up using the second room for storage and an occasional guest.

Two-Bedroom Condos Appreciate More than One-Bedrooms Condos

Below is a graph showing appreciation of one and two bedroom condos in Arlington since 2010. To maintain consistency, the data set uses condos built from 2000-2008 limited to one bedroom units with 600-800 sq. ft. and two-bedroom units with 900-1,400 sq. ft.

The average one-bedroom sold for $364,000 in 2010 and is selling for $409,000 in 2017 while the average two-bedroom sold for $529,000 in 2010 and is selling for $638,000 today. If you bought the average one-bedroom in January 2010 with 20% down, you’d have approximately $172,000 in equity today. If you bought the average two-bedroom in January 2010 with 20% down, you’d have approximately $294,000 in equity today by putting an extra ~$33,000 down in 2010.

If You’re An Investor

If you’re an investor, you’re looking at rental income, in addition to appreciation. As I wrote this spring, rental rates have been pretty flat in Arlington, especially along the Rosslyn-Ballston corridor, due to a lot of new rental buildings being built the last 5-10 years.

Based on the average 2010 purchase prices, rental income and a 25% down payment (most common % down for an investor), the average investor along the Rosslyn-Ballston corridor has no cash flow from their investment. The table below does not include maintenance or property management fees and assumes average condo fees, taxes and insurance.

So Why Invest?

Considering that the above monthly cash flow summary does not include maintenance costs, property management fees or vacancy periods where is the value in owning an investment property?

  • Equity Build-Up: For a one-bedroom, your tenants would have contributed an average of $460/mon over the last 8 years ($44,000) to your equity balance and for a two-bedroom, your tenants contributed an average of $680/mon over the last 8 years ($65,000)
  • Tax Benefits: Another major benefit of investing are the tax benefits. Being able to deduct expenses like condo fees, tax payments and repairs. As well as depreciate the value of the condo and provide a huge annual financial benefit to off-set the weak monthly cash flow. A one-bedroom investor may be able to deduct about $20,000 per year and a two-bedroom investor about $30,000. Of course, you’ll want to discuss any deductions with your tax professional first.

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by ARLnow.com Sponsor December 5, 2017 at 12:00 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: Can you provide insight into how much a tear-down home costs in Arlington and how lot size effects sale price of a single-family home?

Answer: Breaking News… land is very hard to come by in Arlington. Only 11 homes sold in the last ten years had one or more acres, and it’s going to cost you over $1M to buy one. The average lot size of a single-family home in Arlington is about 8,400 sq. ft. or .19 acres with about 70% of homes on 6,000-10,000 sq. ft. lots.

Here’s a look at the impact of lot size on sold prices of single family homes over the last three years broken out by zip code:

Cost Of Arlington Homes By Lot Size

The data above takes homes of all sizes and condition into account so it doesn’t do a great job of isolating the actual market price of the land or how much people pay for tear-down lots in Arlington.

To summarize that data, I pulled out the cheapest 15% of sales in each zip code over the last three years. I felt that the cheapest 15% of sales in each zip code were probably good bets for homes being bought for the land/location with the intention of tear-down or major renovations. Note: 22209 didn’t have enough sales to include in this table.

Cost Of Land In Arlington

(more…)

by ARLnow.com Sponsor November 28, 2017 at 11:45 am 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: Are there good loan options available if I don’t have 20% or more to put down?

Answer: There are an abundance of loan products on the market that cater to different professions, down payments and financial circumstances that you should be aware of. “Rate shopping” is easy and moderately effective, but “product shopping” can be much more valuable and something an informed Agent can assist you with. Here are some of my favorite loan programs and the lenders I work with who provide them:

Doctors: Doctor Loan Program from SunTrust: CJ Kemp ([email protected], (301) 651-4189)

The Doctor Loan Program is a residential mortgage loan specifically created for licensed medical professionals to make obtaining mortgage financing easier and more hassle-free. It recognizes the financial toll of medical school and strong, stable future income post-graduation. The rates on these loans are also fantastic.

Eligible Doctors include:

  • Licensed residents/interns/fellows in MD and DO programs
  • Medical doctors
  • Doctors of osteopathy
  • Doctors of dental medicine/surgeons/orthodontics/general dentists (DMD/DDS)
  • Psychiatrist licensed as a medical doctor

Available financing terms include fixed and adjustable rate mortgages for purchases and rate/term & cash out refinances.

  • 0% down up to $750,000 loan amount
  • 5% down up to a $1M loan amount
  • 10% down up to a $1.5M loan amount
  • No mortgage insurance required

Homeowners Buying And Selling: Second Trust/HELOC Program from First Home Mortgage: Jake Ryon ([email protected], (202) 448-0873)

This is a great program for current homeowners who will be buying and selling simultaneously. It allows you to use the future proceeds from your home sale to make a large down payment on your new home, before even putting your current home on the market.

They partner with local banks and credit unions to provide you with a second trust that allows you to put as little 5% down up to nearly a $1,000,000 loan amount. The second trust finances the remaining amount of your down payment (e.g. 15% if you put down 5%).

The HELOC/second trust payment is interest-only, can be paid off any time and can be used like a bridge loan to allow you to purchase a new home without a home-sale contingency and to sell your existing home unrestricted.

Low Down Payment: Mortgage Insurance Payment Eliminator from McLean Mortgage: Troy Toureau ([email protected], (301) 440-4261)

This program enables you to put as little as 3% to 5% down using conventional financing (not FHA) and eliminate the monthly mortgage insurance payment by making a one-time more affordable payment.  This provides multiple benefits including a potential increase in buying power by reducing the Debt-to-Income ratio (lower monthly payment), allowing you to negotiate for the seller to make this payment by rolling it into closing costs, and ensuring that the entire payment is tax deductible (confirm with your tax advisor). (more…)

by ARLnow.com Sponsor November 21, 2017 at 11:45 am 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: We are buying a vacation home this winter and wondering how the process and rules differ from our experiences buying our primary residence.

Answer: Buying a vacation home is a little like buying a primary home, but there are key differences you should be aware of. Lenders tend to set more stringent lending requirements and you must be clear about your plans for the property. With these considerations, potential buyers can plan for the financial obligations and time commitments common to the purchase of a second home.

What Counts as a Second Home?

Lenders treat primary residences, second homes or vacation homes and investment properties as unique types of property purchases. Typically, lenders are more likely to grant loans with more favorable terms to people purchasing homes as a primary residence, as the occupation of the home usually ensures a higher degree of timely repayment. Properties that will never be occupied by the owner have different lending and tax obligations. As such, to buy a second home or vacation home, lenders often require you to choose properties that are a set distance away from your primary residence. You must also indicate that you’ll occupy the property for a set amount of time each year.

Vacation Home or Investment Property

Given that a vacation home must be a notable distance from your primary residence, you should consider the type of arrangement that works best for you. Homes suffer from lack of attention, so you should be prepared to make regular visits for maintenance and repairs, or hire a local company to do so. Larger or more remote properties may demand more care, while a condominium in a developed area might require less. You may also choose to rent out the property in your absence to help pay for the mortgage. However, this may affect the classification of the property purchase, and have other tax implications.

Capital Gains Taxes

Selling a primary residence often qualifies the seller to exclude up to $500,000 of the capital gains from their tax liability for a married couple ($250,000 for a single person), but vacation homes are viewed differently. Typically, a homeowner must have lived in the home as a primary residence for at least two of the past five years to qualify for the maximum capital gains tax exclusion.

People who never occupied the home as a primary residence do not qualify for the exclusion and may be required to pay capital gains taxes. Buyers who eventually intend to occupy the vacation home as a primary residence should carefully consider when they plan to sell both properties. For example, a person who sells a primary residence and moves into a vacation home may be able to claim the vacation home as a primary residence, if they occupy it for a minimum amount of time. However, they cannot claim the capital gains tax exclusion more than twice in a two-year period. (more…)

by ARLnow.com Sponsor November 14, 2017 at 11:45 am 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Where Is It? Columbia Forest is a small neighborhood on the western border of Arlington bounded by Columbia Pike to the north, Four Mile Run to the east, S George Mason Dr to the south and the Arlington-Falls Church border to the west.

It is largely considered the most affordable neighborhood in Arlington with detached homes in good condition selling in the $400s and 1BR-2BR condos in good condition selling in the mid $100s. There are also pockets of townhouses and duplexes available. The neighborhood is served by Claremont and Barcroft Elementary Schools, Gunston and Kenmore Middle Schools and Wakefield High School, which is walking distance from every home in the neighborhood.

About The Interviewees: Arthur works for a local University and had previously lived in DC since 1997. Lyz works for Walter Reed in Bethesda and had lived in Annapolis and Gaithersburg. When they moved in 2015, it was the first time either had lived in Arlington and they chose a duplex in Columbia Forest for its affordability and convenience.

Since moving in they’ve added a free library in front of their home (pictured), added a prized garden that keeps their neighbors and friends stuffed full of veggies and painted the exterior of the house. Both Lyz and Arthur are highly active in the civic association and neighborhood programing.

What Do You Love About Columbia Forest? The affordability of it was key and we actually have yard space, which is hard to find at a good price in Arlington. It’s an eclectic neighborhood with a sense of “live-and-let-live” that is difficult to come by elsewhere in Arlington. There’s no overreaching HOA and neighbors are accepting of untraditional landscaping, exterior paint and the individuality of each other.

It’s also a very safe place to live — during a civic association meeting, one of the police representatives said that it’s one of the safest neighborhoods in Arlington. It’s also an inviting community for families and children because there’s not a lot of traffic and plenty of space for kids to play in yards and the street.

Does Columbia Forest Have Its Own Identity? There’s a lot of community here that gives us a sense of belonging to a true neighborhood. We were shocked at how active it is on Halloween for local families and because so many of our neighbors have lived here for decades, there’s a welcoming social scene that we’ve enjoyed becoming a part of. You can tell people here truly care about one another.

We’ve also teamed up with other “West Pike” neighborhoods like Barcroft and Arlington Mill for programing and hosted our fifth annual food truck event in October with over 300 people (Lyz is highly active in this event). Note: check out one of the best neighborhood websites I’ve seen at http://www.columbiaforest.org/. (more…)

by ARLnow.com Sponsor November 7, 2017 at 12:30 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: Do you have any details on the new condo building on Columbia Pike?

Answer: The development of Columbia Pike continues westward with the introduction of a very affordable, brand new condo building by Pillars Development Group. The success of recent residential projects, Columbia Place (condos and some townhouses) and Carver Place (townhouses), along the eastern half of Columbia Pike, signal that this will be a successful project for Pillars, who has developed other local condos like The Berkley in Ballston, The Henry in Alexandria and The Paramount in Reston.

What I’m Tracking

The developers decided to make 25% of the units Jr 1BRs, with just under 500 sq. ft., which hasn’t been a very common product in newer construction so I’m looking forward to seeing how these sell. I think it will be a great secondary residence for buyers who live 90+ minutes away and work nearby, as well as the modern value-based buyer looking for affordability and less space.

Unlike most small studio spaces, they have a separate room to sleep (functional bedroom that doesn’t meet legal bedroom requirements) which makes them much more desirable than studios with one large living/sleeping space. The asking price of these units will range from $250k-$300k with monthly condo fees just under $200.

For reference, only 32 condos have sold in Arlington over the last two years for less than $300,000 and monthly fees under $250. The average construction date of those units was 1964, with none being built in the last ten years.

Affordable

Affordability and value are the selling points for Trafalgar Flats (ease of pronouncing the name is not) with 700+ sq. ft. 1BR units selling from the mid to upper $300s and 2BR/2BA units starting in the mid 400s.

The monthly condo fees are also a selling point, coming in about 10-15% lower than the average fee/sq. ft. of other Arlington condos, while still including a gym, lobby, outdoor terrace and bike storage. Above average condo fees were a problem for a lot of potential buyers of Rosslyn’s recent Key & Nash project, which is about 50% sold and about three months from completion.

For reference purposes, there have been 308 2BR/2BA condos sold in Arlington over the last two years for less than $500k and fees under $450/mo., but only three were built in the last 10 years. Bottom line… it’s rare to find value like this in Arlington.

Investment-worthy

There aren’t too many places left inside and around the beltway where you can expect above-market appreciation, but Columbia Pike is one of them, especially the western half now that the eastern section has already seen substantial growth.

At the current pricing and being in the early stages of western Pike development, savvy buyers and investors should pay attention. The property sits just two blocks from the site of the under-development Columbia Pike Village Center, anchored by a Harris Teeter (replacing Food Star), slated to open in 2019. Expect strong ROI from all three options — Jr 1BR, 1BR and 2BR. (more…)

by ARLnow.com Sponsor October 31, 2017 at 12:30 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: I’m the Treasurer at [redacted Condo Association] and we’re working on the 2018 budget. What’s a good way for us to save money in the budget without compromising the health and maintenance of the building?

Answer: As a former Condo Board Treasurer, I feel the pain that this time of year brings, so I’m happy to offer some advice that helped me finding savings while I oversaw the budget and has helped other Associations do the same… review your Master Insurance Policy. I know, it’s not the most exciting answer, but your insurance policy is likely a top three expense on your balance sheet every year and if you haven’t reviewed it lately, there’s a good chance you can cut the cost by 5% or more and probably improve your coverage at the same time.

I’m not an expert in insurance so, I asked Andrew Schlaffer, Vice President at USI Insurance Service’s Community Association Practice (www.USI.com) to provide some details on what Board’s should look for when they do a review of their Master Policy. If you’d like to discuss a review with Andrew directly, you can reach him at 703.205.8764 or [email protected]. Take it away Andrew…

Pillars Of Insurance Reviews

Condo insurance reviews require a holistic approach, so it’s important to break the cost into a few distinct categories: insurance premium, deductible expense and out-of-pocket costs. To effectively accomplish long-term savings, all three of these categories need to be considered and addressed with a qualified insurance professional.

Adjust Coverage Responsibly To Save On Premium

Premium is certainly a factor to consider during the insurance selection process; however, available insurance products differ significantly. Coverages and services should be very carefully analyzed and compared. While omitting various coverages will save premium dollars, it might also result in substantially increased costs to the Association for out-of-pocket expenses related to uncovered claims.

It is critical to work with a professional who understands local insurance needs and can adjust your insurance program in a way that maximizes premium savings while maintaining adequate insurance coverage. Some coverages may be required by statute and/or Association documents, so cutting required coverage exposes the board to unwanted risk.

Deductibles Based On Loss History

Associations with strong financials often choose to increase their property deductibles which can provide immediate savings of 2-5%. Deductibles range from $2,500 to $25,000+. When considering deductibles, it is important for the Association to review their loss history and the loss history of comparable buildings in an effort to obtain an accurate estimate for deductible expenses.

Rate Shopping

The most common strategy employed by Associations seeking lower insurance costs is to shop their carrier. An Association can accomplish this in several ways but generally their appointed broker can offer alternative carriers in an effort to obtain the most competitive rates possible. Make sure your broker has access to all of the competitive markets in order to maximize the likelihood of finding savings. (more…)

by ARLnow.com Sponsor October 24, 2017 at 12:30 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: I came across an article you wrote about how buyers and sellers can avoid the most common problems encountered in a real estate transaction and it made me wonder what some of the most common mistakes are that home owners make when selling that have the biggest impact on their bottom line.

Answer: The biggest mistake a home owner can make when selling their home is not calling me first… kidding (but not really). Below are a handful of the biggest mistakes I see home owners make when selling their home, that have the most impact on their net bottom line. This is not exclusive to homes sold without an agent either. Unfortunately, I see many of the same mistakes on For Sale By Owner (FSBO) homes as I do on listings owners are paying an agent to manage.

Over-Investing In Updates

Choosing the right combination of updates to invest in (or not) to prepare your home for sale has the biggest impact on your net bottom line of any decision you’ll make. I cannot stress the importance of getting this decision right early in the process.

You should only invest in updates that will result in an ROI of greater than 100% or it’s a waste of money and time. Of course you will be able to sell your home for more money if you redo the kitchen and master bathroom, but in most cases, you’ll only get a fraction of your money back, generating a huge net loss for you.

Similarly, don’t spend $10,000 replacing floors, but ignore painting and leave your old brass doorknobs. Selecting the right “package” of updates that will generate the highest ROI is specific to your sub-market, budget, priorities and time of year.

Working with an agent on these decisions who works with both sellers and buyers is critical because they have a strong understanding of how buyers interact with homes during showings and the impact certain updates have on their buying decisions.

Stop Using Amateur Photography

My photographers are some of the most valuable assets I have because the quality of photos can make the difference between drawing heavy traffic and being passed over… Traffic = offers and heavy traffic = multiple offers. Buyers and agents are combing through a lot of homes to decide what is worth seeing in person and the quality of your photos influences that decision more than anything else. Do not take pictures with your cell phone. Do not use an amateur photographer. Do not use a photographer without real estate experience.

Listing On The Wrong Day

It’s Sunday evening… you’ve taken pictures, selected your asking price and spent all weekend cleaning so you’re finally ready to put your beautiful home on the market, make yourself a drink and watch the offers roll in. STOP. There is one day of the week that you should put your home on the market to maximize exposure while minimizing days on market (and two acceptable alternatives), but Sunday evening is not one of them. Feel free to email me to find out which day you should list your property and why.

Stage It… Vacant Or Not

I discussed this in detail earlier this year. It hasn’t changed. Yes, you should hire a staging professional. (more…)

by ARLnow.com Sponsor October 17, 2017 at 12:30 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: We are planning to buy a home in the next 12 months and wondering what the real estate market is like during the winter. We’ve heard it’s a bad time to sell, but does that mean we won’t be able to find anything we like?

Answer: I love working with buyers in the winter because we have more opportunity to negotiate (a nice reward for fumbling with keys in the dark when it’s 30 degrees) and the probability of finding a seller ready to negotiate increases substantially. In Northern Virginia, the winter market generally runs from late November through late February/early March (Thanksgiving to March Madness) and is defined by increased buyer leverage, less contract activity and fewer new listings. While many buyers can benefit from winter shopping, it’s not the right time for everybody.

Buy In The Winter If…

  • You’re a bargain hunter
  • What you like is priced just outside of your budget
  • There is a regular supply of homes you like
  • You can accept having a few offers rejected

Wait For The Spring If…

  • You have specific, hard-to-find criteria
  • You value the perfect home over a great deal
  • Your purchase is contingent on selling your current home (requires additional conversation)

That’s not to say you can’t negotiate a great deal in the spring or find a unique property in the winter, but if you’re playing the odds, the above is a good set of guidelines for deciding the best seasons to focus on a purchase.

I’ll let you review the trends in Northern Virginia for yourself:

Buyer Leverage Increases In The Winter

In the winter, buyers pay about 2% less, relative to original asking price, than they do in the spring. On a $500,000 purchase, that’s $10,000 in savings.

New Contracts To Purchase Drop By Half In The Winter

Buyers have more leverage in the winter because there are fewer of them actively searching the market.

It’s Harder To Find What You Want

The probability of the home you want hitting the market in the winter drops substantially, making it difficult on selective buyers. This is also why fewer homes go under contract in the winter.  

If you’re on the fence about buying this winter or not sure if you have time to prepare yourself to make a purchase, send me an email at [email protected] or give me a call at (703) 539-2529 to discuss your options and put a strategy in place.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

by ARLnow.com Sponsor October 10, 2017 at 12:00 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Today marks my 100th Ask Eli column, combining for nearly 60,000 words written about our local real estate market. How am I doing? What topics and statistics would you like to see more of?

One thing I’d like to do more of is use this space to help organize the community around ideas most residents care deeply about, but have little information on, like eliminating smoking from condos and saving/growing the tree canopy.

I appreciate everybody who has reached out with feedback, both positive and negative, and thoughtful questions that keep these columns relevant and organic. I also appreciate our active commenters who keep me on my toes and challenge me to back-up my opinions.

A special thank you to Scott Brodbeck and his team for providing us Arlingtonians a valuable source of hyper-local news coverage and a platform to discuss our opinions. Did you know that ARLnow is run from a small office with just a few people, not a newsrooms of fact-checkers, reporters, and writers? I was shocked by how much they accomplish with so few people. Kudos to Scott and his dedicated team.

Thank you for your support and I look forward to providing you with more honest, statistically-driven real estate discussion in my next 100 columns!

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781

by ARLnow.com Sponsor October 3, 2017 at 12:15 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: How old are most of the homes in Arlington and where are the newer homes located?

Answer: I thought I’d balance last week’s column on schools with something a bit less controversial… the age of our housing stock. The majority of housing units in Arlington were built from the 1930s through the 1950s.

With limited land available to build new communities, the majority of single family homes built in the 21st century are one-off projects replacing older homes instead of larger new communities you see elsewhere in the country.

I pulled data on all sales in Arlington since Jan 1, 2010 and broke it down by the decade. Each housing unit was built to provide some insight into the age of our market and where you’re likely to find the most homes for sale built in the 21st century. Note that this is not a dataset of all Arlington housing units, just those sold since 2010.

Data Highlights

  • About 40% of Arlington’s condo inventory was built in the 2000s and caters to our huge population of wealthy millennials
  • The fastest selling (highest demand) sub-market is for 1940s townhomes in Fairlington, a popular destination for young families due to affordability, convenience and walkability to Shirlington Village
  • Despite the average family size in the US decreasing by about one person since the mid 1900s, the average single family home built in the 21st century has 1.5 more bedrooms, 2 more bathrooms and is over twice the size (they also take the longest to sell)
  • The oldest home sold since 2010 was built in 1836 and located in the Alcova Heights neighborhood (off Glebe Rd, between Rt 50 and Columbia Pike) and sold for $950,000
  • Nearly half of single family homes built in the 21st century are located in the 22207 zip code
  • Housing built in the 1940s (4,647) and 2000s (4,218) make up 40% of the housing units sold since 2010
  • Single family homes built in the 1940s sell fastest among all single family homes, likely due to demand for homes to be torn down or expanded and renovated

(more…)

by ARLnow.com Sponsor September 26, 2017 at 12:15 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: How do Arlington County school systems impact the market price of homes in Arlington? Which districts offer the most value based on quality of education and the cost of buying a home?

Answer: For most families, finding the right home in Northern Virginia is a delicate balance of budget, schools and commute, with the latter two having the biggest impact on market price. If you’ve chosen to put down roots in Arlington, I’ve put together some data on Arlington County Public School districts for middle school and high school that will help you understand how your school district selection will impact your budget.

The Data

Please note that the data below is not based on all homes sold within a given school district. It is a sampling of homes within a specific sub-market in an attempt to present an apples-to-apples comparison of the premium/discount buyers can expect when searching within each district, that can be applied to other sub-markets. For example, the average sold price for homes in the Jefferson+Wakefield district is far less than $1M, but within the chosen sub-market, it is just over $1M.

In order to compare homes within a relatively similar and popular sub-market, I have chosen to use sales dating back to Jan 1, 2014 for detached homes built within the last 20 years with at least four bedrooms, excluding distressed sales. This prevents sales of tear-downs/full renovation homes from throwing off the data and gives us a pretty clear picture of the relative cost differential by school district. Not every home listing is populated with school districts (I estimate that 5-10% is missing at least one school), so those sales are excluded from the data. That is why the total sales for just middle school and just high school data are slightly higher than middle and high school combined data, because some listings just had one of the two fields populated.

School Rankings

GS Rating = GreatSchools.org rating for each school. I thought this would be an interesting, objective way to compare relative value based on a 3rd party rating, which has a huge influence on buyers’ decisions. You may also want to check out Niche.com for some different rankings of our publics schools and where Arlington County is ranked as the #1 school district in the DC area and in Virginia or US News and World Report for national rankings of our high schools.

Data Summary

For those of you familiar with the Arlington County Public School system and its impact on home prices, most of this data falls in line with expectations. Here are some comments on the findings:

  • Williamsburg+Yorktown is the highest rated school district combination in Arlington and, unsurprisingly, the most expensive to buy into.
  • Kenmore+Wakefield is the lowest rated school district combination in Arlington, but the second least expensive to buy into. However, due to the relatively low number of sales in this sub-market, the data here is slightly misleading because 2/3 of the sales are new construction which have a substantial impact on average sold price. The low number of total sales is due to the limited number of homes sold that are built in the last 20 years, not the a reflection on the total number of homes sold.
  • The best bang for your buck is the Swanson+Yorktown combination, offering the lowest cost per rating point (GreatSchools)
  • Despite having the fourth highest combined rating score (GreatSchools), Jefferson+Washington Lee is the second most expensive district to buy into. Why? It serves the popular and expensive Lyon Park community.
  • For reference, here are the Arlington County Middle School and High School boundary maps.

(more…)

by ARLnow.com Sponsor September 19, 2017 at 12:45 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Where is it?

Douglas Park is a large neighborhood in South Arlington bordered by Columbia Pike to the north, S. Four Mile Run Drive to the west, S. Walter Reed Drive to the east, and ends at the intersection of each of those roads to the south.

It hosts multiple parks and Randolph Elementary School, although households in the southern portion of the neighborhood go to Hoffman-Boston Elementary and students in the northwestern corner are districted to Barcroft Elementary School. The majority of households are districted to Jefferson Middle School, but the Barcroft Elementary households in the northwest corner end up at Kenmore Middle School. Every household in Douglas Park ends up at Wakefield High School.

Douglas Park is a blended neighborhood of mostly residential housing, ranging from affordable multi-family buildings for rent or purchase along the northern and eastern borders, a few pockets of town homes built in the 1960s and again in the 2000s, but mostly single family homes build in the early/mid-1900s many of which are cape cods and bungalows that are popular targets for renovations and expansions.

About the interviewee:

Anne and her husband, Horacio, met in Colombia (the country) and moved to Shirlington in early 2015 before buying their home, where they’re raising two young children. They weren’t in a hurry to move, but found a home with potential on a street they loved, and bought their Douglas Park Cape Cod in late 2015.

They spent about three months renovating the kitchen, refinishing floors, and giving the house new life while trying to maintain the original charm as much as possible. Just after moving in, they dealt with some pipe issues that required them to tear up a lot of their front yard, but turned a bad situation into a positive by introducing some beautiful landscaping and hardscaping out front.

What do you love about Douglas Park?

We’re part of an incredible community here. Being a bi-lingual family, we love living in a bi-lingual neighborhood. An added plus that we hadn’t thought to be so important before experiencing it, is the cross-generational interaction. The young families who just moved in hang out with neighbors who have lived here for decades.

It’s also very front-yard focused, so in the evenings and weekends, you’ll see most of the neighborhood out front, spending time together, not tucked away privately in their backyards (note: this was highlighted in the Claremont Neighborhood Spotlight and a trend in many South Arlington neighborhoods). It’s a beautiful, engaged, diverse community.

We also have great access to public transportation, despite not being near a Metro station. Whenever I can, I take the bus to work in Courthouse. Also, despite not having sidewalks, the streets are wide enough for kids to safely ride bikes and walk without being in danger.

(more…)

by ARLnow.com Sponsor September 12, 2017 at 12:00 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: We installed an in-ground pool when we bought our house and now that we’re considering selling it, we’re wondering if it’s better to improve the condition of the pool or fill it in and replace it with more usable space.

Answer:

You Will Lose A Lot Of Buyers…

You will lose the majority of your buyer pool (pun intended) by offering your home for sale with a pool. With limited months of the year warm enough to use a pool, limited yard space, and high maintenance costs, most Arlington home buyers consider an in-ground pool a deal-breaker. You’ll see from the Fairfax County data that this is true for Northern Virginia, not just Arlington.

…But It May Not Matter In Arlington

This does not mean you should spends tens of thousands filling your pool in and covering it with new landscaping. Arlington has so few homes for sale with a pool that despite losing a large percentage of your potential buyers, you’re likely to benefit from the pool because it’s such a unique feature. Remember, it only takes one person/family to buy your home.

Arlington & Fairfax County Data

Since January 1 2012, only 29 detached homes have sold in Arlington with an in-ground pool, while during that same period, 1,548 homes in Fairfax County sold with an in-ground pool.

Arlington sellers with a pool fared well with an average of only 29.3 days on market, compared to about 50 days on market for all other detached homes. 18 of the 29 sales sold in 10 days or less.

On average, those 29 sales were 3 percent lower than the original asking price, with a county average during that period closer to 2.5 percent, but not everybody sold at a discount because 11 of the 29 sales sold for at or above the asking price.

Arlington has so few homes with in-ground pools, that we have to look to Fairfax County to gather some meaningful data:

During this time, detached homes spent an average of about 60 days on market and sold for about 97.5 percent of their original asking price.

As you can see from the table above, it took nearly 40 percent longer to sell a home with an in-ground pool and buyers negotiated an average of 3 percent more off of the original asking price. This supports the idea that most buyers in Northern Virginia don’t want a pool, but the lack of available inventory in Arlington offsets that and can be turned into a positive for sellers.

Take Notes From Fairfax, Timing Matters

The above table for Fairfax County also highlights that if you’re going to sell a home with a pool, you should do so within the spring market so your buyer has the immediate satisfaction of using it for a full season after they purchase.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

by ARLnow.com Sponsor September 5, 2017 at 12:45 pm 0

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: I live in a building with above average condo fees and am wondering what impact the condo fees will have when I decide to sell?

Answer:

On Average

The average condo fee for a one bedroom apartment in Arlington is $397/month and $530/month for a two bedroom unit. On average, owners pay 50 cents per square foot they own. Looking at my favorite sales indicators, days on market and sold price to original ask ratio, there is a direct correlation between higher condo fees and the number of days on market, as well as between higher condo fees and greater buyer discounts from the original asking price (see first and second data tables below).

Pricing Around Fees

When pricing your condo, you must factor in the monthly fees compared to condos in similar communities.  Since buyers manage their total monthly payment, along with the total sale price, consider that on a 30 year mortgage with a 4 percent interest rate, increasing the mortgage by $21,000 increasing the monthly payment by $100. Thus, as a simple rule of thumb, for every $100/month difference in condo fees on a comparable unit, there should be an adjustment of about $20,000 in market value.

Data Summaries

There’s a lot of important information hidden behind data on condo fees like building services/amenities and the inclusion or exclusion of utilities and/or cable and internet, but the data on condo fees in Arlington is valuable nonetheless.

The following data summary represents apartment-style condo sales in Arlington over the last four years, broken down by condo fee ranges. Of note is that as the fee and fee per square foot increases, so does the time it takes to sell and percentage discount buyers negotiate of the asking price.

Note that of the $1,000+ fee sales, one third are from Turnberry Tower, Arlington’s premier luxury building, and another 15 percent are from Crystal Gateway, a building with expansive floor plans and the largest amenity package of any community in Arlington.

The following table is a cross section of the above data set, limited to sales that closed from $250,000 to $500,000, thus presenting the data within a more comparable sub-market.

How much does a building’s age impact the condo fees?

Most people would say that older buildings have higher condo fees because they have higher maintenance and replacement costs. Let’s take a look at the data for one and two bedrooms sales, by the decade it the community was built.

Of note is that the buildings from the 1950s and earlier have the most limited (or non-existent) amenities and there seems to be a jump in fees per square foot in buildings as they reach the 20 year mark, but leveling off after that, in-line with my expectations because most major systems require expensive repairs or replacement around the 20-30 year mark.

In order to truly understand the impact of condo fees on your condo, it’s necessary to drill down a few more levels within your specific sub-market(s). If you’re interested in exploring condo fee data for your unit, feel free to email me at [email protected] and I’d be happy to provide you with a more customized data summary.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

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